Pounds To Dollars - GBP/USD Daily FX Chart 25th June 2009

Pounds To Dollars - GBP/USD Daily FX Chart 25th June 2009

Yesterday’s candle on the pounds to dollars daily chart has provided us with several interesting points to consider from a technical perspective as the pair continue to consolidate into a pennant formation.  The first, and perhaps most obvious point, is that yesterday’s candle ended as a doji shooting star, a classic sign of weakness and one which has been duly confirmed in this morning London trading session with a steep fall of almost 200 pips.  The second point to note is that the high of the day failed to penetrate the 1.666 price level, almost to the nearest pip, and this failed attempt to rise now aligns almost perfectly with those of early and mid June.  Finally the 9 day moving average is about to cross the 14 day moving average suggesting some bearish sentiment is entering this pair coupled with the failure of the bulls in yesterday’s trading session.  Moving to the fundamental news on the economic calendar with nothing for the British Pound the principal item for today is in the US where the weekly unemployment claims which have just been announced at 627k, significantly worse than the expected 602k and certainly worse than last week’s figures of 608k, which will no doubt prompt a further sell in equities as the so called “green shoots” wither back underground.   The other two items of fundamental news in the US were the final GDP figures which came in at -5.5%, marginally better than expected at -5.7% and the final GDP Price Index which came in on forecast at 2.8%.  My trading suggestion for today is to attempt small shorts on an inter day basis using the 5 min chart to time your entry and exit points with tight stop losses.

You can keep up to date with all the latest fundamental news on the economic calendar, latest currency news and live currency charts by simply following the links.  I have also included details on an excellent ECN broker.